|Letting go was bittersweet.|
I Did It...I am no longer an Airbnb Host.
Earlier this month I closed on the sale of my Airbnb. The decision to sell was tougher than I anticipated, and it's a bittersweet goodbye.
I learned an important investing lesson with this home:
The price paid for an investment is more important than any other factor.
Anatomy of a Home Sale
I purchased the house a couple years after moving to Florida, in 2014. Tampa Bay was at the tail end of recovery from the housing crash of 2008/2009. By 2014, investment groups were buying up houses all over the area and converting them to rental properties. Deals were getting harder and harder to find. I spotted a 2 bedroom, 1 bath home that was in foreclosure and listed at $44,900.
|Out with the old...|
|In with the new.|
When I was shopping for a house, I was looking for a personal residence, and I enjoy projects. This house was certainly begging for some love. We called this our home for nearly four years, and in that time we put in a new kitchen, two new bathrooms, and made improvements in every room. When we decided to buy a brand new house, I figured I would test Airbnb before renting the house long term. Best. Decision. Ever.
By the Numbers
I didn't keep a good record of what I spent working on the home while I was living there. There was a ton of sweat equity as the only parts I hired out were the bathrooms and the kitchen countertop. In summary, I got a place to live for four years, followed by four years of solid Airbnb income. Including the profit from the sale with the Airbnb income, my annual ROI was massive!